ICTU widens its focus in seeking pay deal review

The Irish Congress of Trade Unions (ICTU) has carefully avoided calling for a general pay increase in its demand for a special review of the Programme for Prosperity and Fairness (PPF). Instead it has opted for "further measures to reduce inflation", compensation for price rises in the budget for workers and those on welfare, accelerated improvements in childcare provision and in social infrastructure such as housing and healthcare provision.

The only specific call which might cause problems for employers representatives when they meet the ICTU and the other social partners in Dublin Castle next Thursday is that for "increased use of profit sharing and gain sharing schemes". The Irish Business and Employers Confederation is likely to remind unions this is a voluntary provision of the PPF.

After ICTU's executive meeting yesterday, union leaders were reluctant to discuss generalised pay rounds, except as a last option. IMPACT's general secretary, Mr Peter McLoone, said: "The primary imperative is to deal with inflation because, if we don't, the PPF becomes a casualty of the inflation problem. Then the question becomes what's the next casualty. It could be competitiveness or employment."

But another public service union leader, Mr Blair Horan of the Civil and Public Service Union, did not rule out a pay review. His preferred option is a mini-budget before Christmas, but he argues a pay round might be less inflationary than tax cuts, especially if weighted towards the low and middle income groups.

Responding to the ICTU move, the Taoiseach said he would discuss arrangements and preparations for talks with Congress next week.

He said he, the Tanaiste and Minister for Finance would normally be beginning pre-budget consultations with the ICTU in late September anyway. "I understand they are asking that we start that little bit earlier and of course, that is something we'll discuss," he said. "In the spirit of social partnership" it was important to keep up the level of dialogue and communication, he said.